NUNAVUT – Toronto-headquartered AGNICO-EAGLE MINES says that based on additional higher grade intersections, it has extended its estimate of the gold zones at the Meadowbank gold project, 70 km north of Baker Lake.
Highlights of the recent exploration activity in Nunavut include the following:
– Several drill holes have intersected mineralization between the Goose South and the Goose Island zones, suggesting that they are linked at approximately 150 metres below surface. These zones remain open at depth and to the south.
– Drilling both within the main Portage zone pit outline, and immediately adjacent to it, has succeeded in extending the mineralized envelope at depth and along trend to both the north and south.
– Drilling suggests continuous gold mineralization over 3.5 km, spanning the Cannu zone all the way to the Goose Island zone.
– The growing gold mineralization envelope and the higher grade intersections suggest the potential for longer mine life and possibly improved project economics as the results are incorporated into the operating plan.
Agnico-Eagle expects that production will begin in 2010 from an open pit and 8,500-
t/d mill. Capital costs to bring the deposit to production are estimated at $375 million.
The most recent reserve figure is 21.3 million tonnes at 4.2 g/t Au or 2.9 million oz of gold.
Agnico-Eagle acquired 100% of the project when it bought CUMBERLAND RESOURCES in July 2007. See www.Agnico-Eagle.com for information about the deal.